Securities And Exchange Commission v. Goldfarb et al

Filing 176

ORDER CONCERNING THE RECEIVERS MISCELLANEOUS ADMINISTRATIVE APPLICATION FOR AN ORDER PURSUANT TO LOCAL RULE 7-11 TO LIQUIDATE ASSET 175 .(whalc2, COURT STAFF) (Filed on 4/21/2015)

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JOHN W. COTTON (SBN 54912)
Email: [e-mail]
GARTENBERG GELFAND HAYTON LLP
801 S. Figueroa Street, Suite 2170
Los Angeles, CA 90017
[phone]
Receiver of Baystar Capital Management, LLC
and Lawrence Goldfarb

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UNITED STATES DISTRICT COURT

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NORTHERN DISTRICT OF CALIFORNIA

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SECURITIES AND EXCHANGE
COMMISSION,

Case No.: C-11-0938 WHA

[PROPOSED] ORDER
CONCERNING THE
RECEIVER’S
MISCELLANEOUS
ADMINISTRATIVE
APPLICATION FOR AN
ORDER PURSUANT TO
LOCAL RULE 7-11 TO
LIQUIDATE ASSET

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Plaintiff,
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v.
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LAWRENCE R. GOLDFARB and
BAYSTAR CAPITAL MANAGEMENT,
LLC,

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Defendants.

Date:
Time:
Judge:

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N/A
N/A
William A. Alsup

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By this Motion, the Receiver in the above matter, John W. Cotton seeks

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permission to enter into a purchase and sale agreement with Cascade Capital

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LLC (“Cascade”) to sell the Receivership estate’s illiquid interest in a joint

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venture, known as LRG Cascade, between Cascade and defendant Lawrence

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Goldfarb’s solely-owned entity LRG Capital Commercial (“LRGCC”).

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The Receiver recommends the proposed sale after discussing the

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proposed terms with defendant Baystar’s three largest Island Fund side-pocket

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investors, who comprise 93% of the investors defrauded by defendant

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Goldfarb, and receiving their approval for the sale. Likewise, the Receiver has
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[PROPOSED] ORDER TO LIQUIDATE ASSET

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discussed the proposed terms with the parties to this litigation, defendant

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Goldfarb and the U.S. Securities & Exchange Commission, both of whom have

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no objection to the proposed sale. The terms for the sale call for an immediate

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cash payment to the Receivership estate of $8,609 in return for a full release

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over diminishing future cash distributions, which are estimated to be $14,360

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over the remaining life of LRGCC. The completion of the sale will eliminate

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the need to keep the Receivership estate open until the end of 2017 when

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LRGC terminates, and thereby reduce significant administrative cost to the

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estate.

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GOOD CAUSE APPEARING, the Court hereby authorizes John W.

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Cotton as Receiver, to enter into the proposed sale to Cascade as supported by

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the Motion and accompanying Declaration of Cotton.

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IT IS SO ORDERED.

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DATED: April_______, 2015

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______________________________
Judge William Alsup

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[PROPOSED] ORDER TO LIQUIDATE ASSET